What is Bitcoin and how does it work?

A couple of years ago, I came across Bitcoins and I immediately looked for some info about it before I would die of curiosity. After going through a decent deal of content over it, I realized that the information on this hot topic is not substantial and rather it is misleading to some extent. Therefore, I started going through some business and tech journals and all that I absorbed out of those pieces, here I pour out the essence.

What Is Bitcoin?

We can divide bitcoins into two major parts; 1. Bitcoin-the Token through which one can show the ownership of a digital concept. Quite similar to virtual IOU. 2. Bitcoin-the-protocol-a distributed network that maintains a ledger of balances of bitcoin-the-token. Interestingly, both are referred as ‘Bitcoin’.

How Do Bitcoins Work?

Completely virtual in form, Bitcoins need no stamp of valuation from banks and other authorities because they are precious in their own way. Storage in banks is also not required for them. They possess the value like gold coins do. You can spend them like any other currency to buy goods as well as online services. If not, you can keep them for long and wait for the hike in their value in the coming years.

Bitcoins move from one fellow to another in their wallets. Just like, you move you digital currency in Paytm, Ola money, or Phone Pe. Simply store them in your smartphone, tablet or on cloud and enjoy the hassle-free use.

As far as the safety is concerned, Bitcoins cannot be forged because they are extremely computationally strong; therefore, it is not economically worth it for forgers to play with the system and manipulate it.